Government to impose 10 per cent import duty on sugar

NEW DELHI: The government has decided to impose 10 per cent import duty on sugar in view of surplus production.

The food ministry had proposed 10 per cent import duty on sugar after zero duty regime expired on June 30.

"Finance Ministry has approved 10 per cent duty on sugar imports. The notification will be issued shortly," a senior food ministry official said.

The ministry did not propose a higher custom duty on sugar so that traders can import sugar in times of shortages.

The decision would not have any impact as the country is having a surplus production and exporting the sweetener.

India's sugar production is estimated to reach 26 million tonnes in 2011-12 marketing year (October-September) against 22 million tonnes of annual domestic consumption.

Even next year, the production is estimated to be surplus at 25 million tonnes. In view of surplus output, the government first allowed two million tonnes of exports and then put exports under the open general licence (OGL). Under the OGL, traders have got nod to export 7 lakh tonnes so far.